Analysis and Trade Plan - 21 May 2019
I am trading with very less quantities right now. Negligible quantity for me. I have taken positions which are 1500 points far away from spot price. I am keeping cash free for any adverse movement. Need money to fight uncertainty and adjustments.
US-Trade war escalated to next level with Google breaking up ties with Huawei. It might have little impact on us, because focus is clearly on exit polls and final results.
Yesterday, India Vix crashed by almost 30% in the morning. I was expecting India Vix to crash post elections. That is why I decided to take a bullish trade.
Data wise, we are bullish on Nifty and Bank Nifty.
Max Pain has moved up significantly.
PCR for Bank Nifty is bullish and for Nifty it is still sideways.
One reason for less Open Interest in options is due to high premiums. I mean near ITM premiums are at prices which are not even seen in monthly options.
If there is any divergence of results from what exit polls are predicting, market can take a u-turn so be cautious.
The strategies that I am doing are all on my personal account.
With bullish bias, I am thinking of doing some put calendars today.